Serbia as a transition state and its difficulties in implement adequate economic reforms, has a relatively and stable employment rate. Serbia´s participation and employment rates (almost 62%) are lower than the EU member states but nearly the same level as the new EU Member States
Nevertheless, the major problem is the unemployed persons and that most of the jobs are in the informal or grey sector.
Although there is a constant growth of private sector, it is not sufficient enough to absorb redundant persons. Most redundant workers find it very difficult to get reemployed.
The problem of growing number of unemployed persons in Serbia has been among the largest in recent years. It has to be noticed that registered employment/unemployment do not provide an accurate information about real employment/unemployment, due to the fact that some people are registered only in order to receive some benefits (mainly health insurance).
There are a couple of reasons why the circumstances seem to be stuck.
Firstly, the economic development is very slow.
Secondly, the labor market is not flexible enough.
Thirdly, trade unions and collective agreements have little impact outside the public sector and large firms.
Fourthly, each region has a different comparative advantage and obstacles.
It is necessary to create a list of priorities that are of strategic importance for the specific regional economic development.
Active Labor Market Programs (ALMPs) aims to contribute to increasing employment opportunities and addressing the social problems that often accompany high unemployment. The main groups which are addressed are the youth, women and individuals with lower level of education.
Summarizing, solving the current problems of unemployment there is a need of consistent economic policy, multi-sector job agenda, reforms in education and vocational education, making investing in Serbia more attractive, the role of privatization and restructuring process have to be rethought.